Cloud ERP solutions are growing beyond their roots in the manufacturing industry as companies of various size, from multiple industries, realize the potential inherent in a centralized system for operational management tasks and processes.
While both on-premise and cloud or hosted ERP systems each come with distinct advantages and drawbacks, Cloud ERP systems seem to be increasing in adoption each year, largely thanks to these six key benefits over on-site solutions.
On-site ERP solutions require hardware, which means you have to make a significant upfront investment in your equipment and then continue to maintain it over time to ensure that it’s performing optimally and protected and enhanced with all the latest updates and innovations. Cloud ERP solutions are much more cost effective because they don’t require hardware purchases or system maintenance, as all that is handled for you by the vendor. Cloud ERP solutions are more affordable than their on-site counterparts, but still offer all the same tools, features, and capabilities you’d find in an on-site system. Affordability is a significant advantage for companies to embrace an ERP solution earlier in their business than they traditionally would have been able to do.
2. Implementation Ease
ERP software is notoriously complex to implement simply because there are so many important data sources that must be correctly integrated and connected to the system for it to function correctly and add value to your business. However, between cloud solution availability and the surge of IoT connected devices and systems, cloud ERP can be much less difficult to implement than an on-site solution. While the integration process is still complex and must be planned for carefully, ERP cloud implementations are typically quicker and smoother.
3. Innovative Tools, Features, and Upgrades
Cloud ERP vendors are on the cutting edge of technology and new innovations that are taking place. As a result, they’re usually the first to implement new tools, features, and capabilities into their solutions, and in a cloud environment, such updates and upgrades are much easier to push out to all their clients’ solutions. With a cloud ERP, your solution will always be updated with all the best features and technology to support your business initiatives.
Cloud ERP solutions are also becoming increasingly user-friendly, with intuitive dashboards and accessible tools and features to view, analyze and mold data into the most usable and helpful format. Cloud accessibility of system tools makes it easier for companies with remote employees to embrace ERP and gives you options to boost your business mobility.
4. Real-Time Reporting and Analytics
One of the best advantages that cloud ERP provides for businesses is access to real-time reporting and analytics. Having this deep level of insight into your operations, HR, inventory, finances, supply chain, and more will help your business become much more agile by relying on data that’s updated to the very second you’re looking at it. You’ll gain a competitive advantage by being able to make sound, data-driven decisions quickly and confidently to move your business goals forward.
5. Data Integrity, Accuracy, and Security
Real-time data also helps improve the accuracy and integrity of your data sources. While you need to stay diligent in validating and correctly integrated all the unique data sources that feed into your business and ERP system, cloud solutions are constantly improving to enhance your business with reliable, insightful data in real-time. Additionally, data security in the cloud is becoming more advanced to protect your important business information.
6. Industry Compliance Regulations
Cloud-based ERP systems can help you stay compliant with the regulations that apply to your specific industry. Solutions are held to a high standard of compliance, and can make adhering to the regulations in your business much easier by automating the process and ensuring data is stored and used in accordance with laws.
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